IoT in Aerospace & Defense Market to Expand at 11.56% CAGR Driven by Defense Modernization, UAV Proliferation & Secure Connectivity

According to DataM Intelligence, the Global IoT in Aerospace and Defense Market reached US$ 48.13 billion in 2024 and is expected to reach US$ 115.47 billion by 2032, growing with a CAGR of 11.56% from 2025 to 2032. Growth is driven by rising defense budgets and modernization programs, increasing adoption of connected technologies for operational efficiency and safety, investments in predictive maintenance and real-time monitoring, proliferation of UAVs, and integration of advanced networks like 5G and satellite IoT.

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North America Key Industry Developments
✅ November 2025: Firefly Aerospace announced agreement to acquire SciTec, strengthening space-based sensing and IoT analytics for national security applications.
✅ Ongoing: High investments in connected aircraft systems and predictive maintenance driven by major defense contractors and regulatory support.
✅ Increasing focus on secure IoT integration for mission-critical operations.

Asia-Pacific Key Industry Developments
✅ Ongoing: Rapid defense modernization in China, India, Japan, and South Korea, including Japan's FY2025 budget for secure satellite communications and India's UAV/fighter jet upgrades.
✅ Rising military expenditures fueling adoption of IoT for situational awareness and autonomous systems.
✅ Strategic partnerships enhancing real-time data capabilities in regional operations.

Key Mergers and Acquisitions (Recent)
✅ November 2025: Firefly Aerospace's acquisition of SciTec to bolster IoT-enabled space sensing and analytics.
✅ 2025: IoT Tribe launched Flywheel Programme in partnership with Siemens Digital Industries Software for agentic AI in aerospace and defense.
✅ 2025: PTC introduced Aerospace & Defense Startup Program to accelerate IoT and compliance tools for drones and defense platforms.

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Market Segmentation Analysis
By Component: Hardware, Software, Services.
By Deployment Mode: Cloud-based (major growth driver for scalability and real-time processing), On-Premise.
By Application: Fleet management, Inventory management, Security and surveillance, Training & simulation, Others.

Regional Insights
Asia-Pacific is the fastest-growing region due to escalating defense modernization, increasing military expenditures, and rapid technology adoption in China, India, Japan, and South Korea. North America remains a key market with strong presence of leading contractors and focus on secure, connected systems.

Growth Drivers
Rising global defense budgets and fleet modernization initiatives
Increasing demand for predictive maintenance and real-time operational monitoring
Proliferation of UAVs and autonomous systems requiring IoT connectivity
Advancements in secure communication networks (5G, satellite IoT)
Strategic partnerships and investments in AI-integrated IoT solutions

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Key Players
The market includes leading companies such as AeroVironment Inc., FreeWave Technologies Inc., General Atomics Aeronautical Systems Inc., Honeywell International Inc., Northrop Grumman Corporation, Elbit Systems Ltd., Radisys Corporation, Textron Systems Corporation, Airbus SE, and Boeing Company.

Key Highlights (Top 5 Key Players)
1. Honeywell International Inc. - Advancing connected solutions for predictive maintenance and operational efficiency.
2. Northrop Grumman Corporation - Leading in secure IoT for defense systems and situational awareness.
3. Boeing Company - Integrating IoT for fleet management and advanced aircraft connectivity.
4. Airbus SE - Focusing on IoT-enabled training, simulation, and surveillance applications.
5. AeroVironment Inc. - Innovating in UAV IoT for real-time data and autonomous operations.

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